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Left to Right: CRA board members Roy Carnevale, Byron Orris; CRA lobbyist Richad Steffen; Senator Pat Wiggins; CRA board president Gene Crozat;CRA director Allen Wood and seated, CRA board member Lee Amaradio. At CRA’s request Senator Pat Wiggins (D-Santa Rosa) says she will introduce tough, new provisions to California’s anti-steering law. CRA executive director Allen Wood said the bill is needed to counter the Department of Insurance’s lack of enforcement of the current anti-steering statutes. “We are grateful to Senator Wiggins’ s willingness to help our industry fight the unfair and illegal practices of insurers. This bill, sponsored by the CRA, is aimed at insurers as well as the Department of Insurance which is charged with enforcing laws to protect an open-marketplace.”
Her legislation, proposed to be introduced within a few days, seeks to add the following new provision to Section 758 of the Insurance Code: “(b) When a policyholder first reports vehicle damage to an insurer, the insurer shall determine if the policyholder has selected an auto repair facility prior to providing any information regarding a program or a facility that performs auto body repairs. If it is determined that the policyholder has selected a repair facility, the representative of the insurer shall cease, and not engage in, any discussions regarding a program or a facility that performs auto body repairs. ” CRA lobbyist Richard Steffen added, “We want public debate about the harm caused by insurer steering. I’d like insurers to explain to legislators and regulators why consistently steering claimants away from a specific shop is not restraint of trade. ” The CRA requests members to send steering complaints to Richard Steffen, 3174 16th Street, Sacramento, CA, 95818. He will hand deliver the complaints to the counsel for the Insurance Commissioner each Friday. Additionally, he will retain copies to distribute to legislators who will be voting on the CRA’s anti-steering measure. |
